Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: PaulM who wrote (5445)	1/8/1998 9:20:00 PM
From: lorne	Read Replies (2) \| Respond to of 116810

Thailand first to buy gold out in the open. Thailand hunts for gold to boost eroded reserves 01:38 a.m. Jan 08, 1998 Eastern By Anchalee Koetsawang BANGKOK, Jan 8 (Reuters) - Thailand is hunting for gold to boost sagging reserves hit by the baht's free fall, officials and trade sources said on Thursday. The Thai government is launching a campaign to urge gold shops and the public to swap their stores of the precious metal for bonds. Thousands of gold shops throughout the country have agreed to contribute one kilogram (32.2 troy ounces) of gold each to the government, a finance ministry official said. ''The government intends to issue bonds of either three-year or five-year maturity which are likely to carry an annual interest rate of five percent in exchange for the gold,'' the official told Reuters. In return, the shops and members of the public willing to contribute to the scheme will be issued government bonds. The collected gold will be used to shore up the country's fast-crumbling reserves, depleted by the baht's plunge of more than 50 percent since it was floated last July. One kilogram of gold is worth around 450,000 baht (around $8,500) at current prices in Thailand, and roughly $9,100 at current world prices. On Thursday, the Thai baht hit a new record low of 53.40 per dollar, buffeted by the region's currency crisis. Kitti Tangsithpakdi, president of the Gold Traders Association of Thailand, said gold shops will also act as centres for the collection of contributed gold. ''We estimate that there is around 3,000-4,000 tonnes of gold holdings in the country. I think we can raise as much as 100 tonnes if the government needs it,'' he told Reuters. With the price of gold in Thailand at 6,800 baht per 15 grams, these holdings would be worth about $26-$35 billion at current exchange rates, he noted. Details of the campaign will be finalised next week after a meeting between the government and the gold trade. The Government Savings Bank is likely to be selected as the issuer of the bonds, traders said, but it was not immediately clear what the government would do with the gold. One option would be to refine it and export it to obtain much-needed foreign currency, according to trade sources. Thailand is weathering its worst economic crisis in decades, afflicted by a severe liquidity crunch and troubles in its finance sector. ''This is a time to help the country. The world gold price is so low now. Instead of selling it, one should swap it for government bonds to help the country,'' Kitti said. Gold closed at $283.60 per ounce on Wednesday in New York. It hit an 18-year low of $280.50 during trading on Monday. Kitti said the value of the gold to be swapped for bonds, whether bullion or ornamental gold, would be based on the pricing for 99.99 percent pure gold. The International Monetary Fund, which sponsored a $17.2 billion bail-out package for crisis-hit Thailand, suggested that the country maintain minimum foreign reserves of $24.5 billion this year. Thailand's foreign reserves stood at $26.9 billion as of December 15. When the rescue package was mapped out, it was based on a projection that the baht would stabilise at around 32.00 to the dollar. With the baht plunging below the 53-level, analysts said Thailand's foreign reserves would come under severe pressure.

To: PaulM who wrote (5445)	1/9/1998 1:01:00 AM
From: Eashoa' M'sheekha	Respond to of 116810

Yes,Another Possible Scenario Isn't It. Japan has " verbally " mentioned/threatened something to this effect in the recent past,prior to the meltdown.It was somewhat brushed off as idle threats etc. at the time and have heard little since. Will we see alienation in the next three to six months from that area of world?Rhetoric thus far gives me reason to consider the possibility of a " Made In Japan " or " Made In China " solution.One thing is for sure,gold will begin to surface and be on more and more peoples minds as this situation worsens there.It's certainly taking on it's intended role as a store of value,but as I say,it's " unfortunate " decline has enabled the paper pushers to cast it in a poor light. Is it possible the Western World has had it too good for too long to fully appreciate what is happening in tiger country?Could it be, only as things get so very bad,that conflict breaks out that the average Western citizen becomes aware of the seriousness of the situation? I'm North of the 49th Paul,and am made aware all too often of the rate of exchange with our Southern neighbours.To be sure,a strong North America has been good for us all,yet Canada's currency has been under pressure recently as well due to the US dollar being seen as a safer place to be.Can't argue with that,but the speculative attacks on other currencies on any weakness is gaining much publicity and may bring more attention to the present global currency arrangement.Would not surprise me to see defensive measures installed in the coming few months from some smaller countries. And yes,if we had to wait for the analyists to show us the right direction in public media,we would all be buying the same thing pretty well,likely after their best clients have already taken significant positions.I hold gold related investments,even after today's attempt to push it though the floor,but it becomes a little harder to keep the faith as the bad news bears continue to rock and roll on POG. Good Luck To You Taurus